Sygnia Investments Holdings (Pty) Ltd and African Harvest Life Assurance Company Ltd and African Harvest Alternative Investments (Pty) Ltd (99/LM/Nov06) [2007] ZACT 5 (9 January 2007)

55 Reportability
Competition Law

Brief Summary

Competition Law — Merger Approval — Sygnia Investments Holdings (Pty) Ltd acquiring African Harvest Life Assurance Company Ltd and African Harvest Alternative Investments (Pty) Ltd — Transaction providing minority shareholders an opportunity to acquire controlling interest — Tribunal approving merger based on the exit of majority shareholder from the financial services industry — No anti-competitive concerns identified.

COMPETITION TRIBUNAL OF SOUTH AFRICA
       
           Case No:  99/LM/Nov06
In the matter between:
Sygnia Investments Holdings (Pty) Ltd                                               Firm
And
African Harvest Life Assurance Company Ltd
African Harvest Alternative Investments (Pty) Ltd                                Target Firms
Panel : N Manoim (Presiding), Y Carrim (Tribunal Member) and  
M Mokuena (Tribunal Member)
Heard on : 08 December 2006
Decided on : 08 December 2006
Reasons issued on : 08 January 2007
Reasons for Decision
APPROVAL
1]      On   8   December   2006,   the   Tribunal   approved   the   merger   between   Sygnia  
Investments Holdings (Pty) Ltd, African Harvest Life Assurance Company Ltd and  
African Harvest Alternative Investments (Pty) Ltd. The reasons for approval follow.
THE TRANSACTION
2]    Sygnia   Investments   Holdings   (Pty)   Ltd   (“Sygnia   Investments”)   will   acquire   the  
entire   issued   share   capital   of   African   Harvest   Life   Assurance   Company   Ltd   (“AH  
Life”)   as   well   as   75%   of   the   issued   share   capital   of   African   Harvest   Alternative  
Investments (Pty) Ltd (“AH Alternative Investments”). 
3]    According to the parties, the majority shareholder of the target firms wishes to  
exit the financial services industry and the transaction therefore provides the minority  
shareholders of the target firms with an opportunity to acquire a controlling interest. 
1

4]    The  pre merger  structure of the merging parties is depicted below:
2